Investors may front the cost of a new $18 million annual fee. Photo: Jim Rice

Assistant Treasurer Bill Shorten said the arrangement would ultimately produce cost savings for investors because the new regime would strengthen competition.

For instance, ASX rival Chi-X has been granted a licence to begin trading in Australia as soon as this October. ''Competition in Australian financial markets will deliver better returns for investors by giving them more choice and better prices. We expect this will attract new players, new trading strategies and new liquidity,'' Mr Shorten said.

However, the head of policy at the Stockbrokers Association of Australia, Doug Clark, said it was the first time brokers had been charged a fee for supervision, and the industry had concerns over the impost. ''We are concerned that it's going to drive up costs for our members and their clients,'' Mr Clark said.